Foreign Direct Investments In Bangladesh: Some Recent Trends And Implications

Abstract

For many developing nations, Foreign Direct Investment (FDI) has been viewed as a powerful instrument for economic development.  In particular, FDI has become a major source of capital formation and an instrument for facilitating knowledge transfer.  Expansion of FDI has led countries to build physical capital, increase employment, trade, and gross domestic product, and consequently helped to eradicate poverty.  Using secondary data for Bangladesh, this paper investigates the effect of FDI on some major economic indicators of growth and examines the functional relationship between FDI and indicators.